And let’s be clear: this is not Keynesian: the claim that we’ll all be Keynesian now will be heard, but Keynes’ relationship with deficit spending was complex, and (to be candid) he did not and could not have comprehended the type of situation we’re now in with the type of economy we now have.
Keynes had just lived through the Great Depression. But he wouldn’t understand a few months of disease related economic disruption.
Still, cometh the time, cometh the man, we are safe with the Sage of Ely.
And this is why his measures should include:
a) Underwriting banks
b) Underwriting insurance companies
c) Bank loan repayment holidays
d) Rent payment holidays
e) Tax payment holidays
f) A VAT cut
g) A universal basic income
i) Price controls
Well there’s a certain truth that this isn’t Keynes. Price controls for example:
For these reasons, even liberal economists like John Maynard Keynes have opposed wage and price controls. As he wrote in The Economic Consequences of the Peace, “The preservation of a spurious value for the currency, by the force of law expressed in the regulation of prices, contains in itself … the seeds of final economic decay, and soon dries up the sources of ultimate supply.”
But, you know, the Sage of Ely:
This is modern monetary theory in action. All ideas have their time. The world has just realised that the idea that money can be created out of thin air for the public good, and that using that ability to keep people at work is a far more important objective than balancing books, has arrived. There aren’t many modern monetary theorists in the world but they’re very badly needed right now to explain that this is the only sane route down which we can now travel.
One of those experts the world needs right now being both Sage and in Ely.